ABB transferred the business unit “Electrical networks” HitachiАнна Saveliev | 07.07.2020
The joint venture Hitachi Power Grids ABB begins work after transfer Hitachi 80.1% of the business unit “Electrical networks”.
The transfer of the unit will allow ABB to concentrate on the electrification of transport, implementation of digital solutions and automation of technological processes.
Originally planned to launch a program share repurchase (10%) immediately after the publication of financial results for the second quarter of 2020, ABB will return to shareholders of 7.6–7.8 billion
U.S. dollars net cash.
The program will cover approximately 180 million shares, excluding Treasury shares of the company. It will be implemented in the second of a trading line on six Swiss exchange and completed according to the plan,
until 25 March 2021.
At the Annual meeting of ABB will ask the shareholders to approve the redemption of shares and will disclose further details of the optimization of the capital structure of the company.
Also ABB will initially retain a proportion (19,9%) in the authorized capital of the joint venture Hitachi ABB Power Grids, which will be based in Switzerland. To transfer the share, the company plans within three
years after the completion of the transaction.
Revenues of the joint venture amounts approximately to 10 billion USD number of employees — approximately 36 000 people. The Board of Directors consists of Timo Ihamuotila, chief financial officer
ABB’s Frank Duggan, a former member of the Executive Committee of ABB. Claudio Facchin will take the post of General Director of Hitachi ABB Power Grids.
Mergers and acquisitions
ABB, Hitachi
